A large body of discrete-choice demand studies estimate a model in which the consumer’s budget constraint is not taken into account. We illustrate how incorrectly specifying consideration set, when fact binds for some products, may bias estimates. and quantify nature three ways: (i) analytical examples; (ii) field data commonly used literature (iii) Monte Carlo study. find that price sensitivit...

Modeling the spatial behavior of fishers is critical in assessing fishery management policies and has been dominated by discrete choice models (DCM). Motivated widespread availability micro-data on fishing vessel locations, this paper examines complexity associated with scale a DCM locations. Our empirical approach estimates standard at varying resolutions using both simulated data monitoring s...